Refinance Home Equity Line of Credit – Benefits of Refinancing Home Equity Line of Credit

Refinancing an existing home equity line of credit can save you money
on interest charges. It will also help you establish a payment plan to
help you get out of debt sooner. Another benefit to refinancing is that
you can get better terms, avoiding extra fees associated with a line of
credit.Get Better Rates And TermsGetting better rates and terms on your home equity line of credit is
one of the chief benefits of refinancing. With a line of credit, you have
a couple of refinancing options. You can decide to refinance both your
mortgage and line of credit. Overall this will provide you with a low
rate, but don’t trade in your low rate first mortgage for a more
expensive refinance home loan.The other option is to just refinance your line of credit with a second
mortgage. A second mortgage can offer lower rates, either fixed or
adjustable.Establish A Payment PlanRefinancing a line of credit will help you establish a payment plan.
Before you apply for refinancing, calculate how much you can afford in a
monthly payment. This payment amount will give you an idea of what
terms to choose.Just remember that your interest charges will be smaller than what you
are currently paying. Also, the shorter the loan, typically the lower
the rates are.Find Better TermsTired of paying fees for such things as having a below minimum balance
with your line of credit? Then refinance for better terms. Most refi
mortgages don’t have annual fees. While you will have to pay closing
costs to process the loan, you don’t have to worry about keeping a balance
or paying the account off early.However, it does pay to check. So before you sign for your refi, ask
about any fees included. Late fees should be expected. Early payment fees
can usually be deleted from the contract by paying a fee upfront.While refinancing can save you money, it is important to shop around
for the right lender. Ask about their rates and terms. Request loan
quotes and compare to other lenders. Time spent researching financing
options is an investment that will pay off for years to come.